Correlation Between United States and Skechers USA
Can any of the company-specific risk be diversified away by investing in both United States and Skechers USA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining United States and Skechers USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Skechers USA, you can compare the effects of market volatilities on United States and Skechers USA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in United States with a short position of Skechers USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Skechers USA.
Diversification Opportunities for United States and Skechers USA
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Skechers is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Skechers USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skechers USA and United States is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on United States Steel are associated (or correlated) with Skechers USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skechers USA has no effect on the direction of United States i.e., United States and Skechers USA go up and down completely randomly.
Pair Corralation between United States and Skechers USA
Taking into account the 90-day investment horizon United States Steel is expected to generate 1.71 times more return on investment than Skechers USA. However, United States is 1.71 times more volatile than Skechers USA. It trades about 0.02 of its potential returns per unit of risk. Skechers USA is currently generating about -0.02 per unit of risk. If you would invest 3,946 in United States Steel on August 24, 2024 and sell it today you would earn a total of 10.00 from holding United States Steel or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United States Steel vs. Skechers USA
Performance |
| Timeline |
| United States Steel |
| Skechers USA |
United States and Skechers USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Skechers USA
The main advantage of trading using opposite United States and Skechers USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Skechers USA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Skechers USA will offset losses from the drop in Skechers USA's long position.| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA ADR |
| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |